Which Statement About Service Organizations Is FALSE

question 132

Multiple Choice

Which statement about service organizations is FALSE?

• A) Service organizations include law firms, banks, insurance companies and hospitals.
• B) Service organizations do not make or sell tangible goods.
• C) The service sector accounts for the majority of the employment in the United States.
• D) Managers in service organizations do not need as much accounting information as their counterparts in other types of organizations.

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Definitions:

Monopolistically Competitive Market

An economic setup in which numerous companies offer goods that are alike but not identical, granting them some level of control over the market.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Average Total Cost

The total cost of production divided by the total output or quantity produced.

Monopolistically Competitive Firm

A firm that operates in a market with many competitors, each offering a slightly different product.